BILL NUMBER: SB 1330	CHAPTERED  09/23/00

	CHAPTER   583
	FILED WITH SECRETARY OF STATE   SEPTEMBER 23, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 22, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   JULY 3, 2000
	AMENDED IN ASSEMBLY   JUNE 14, 2000
	AMENDED IN SENATE   MAY 10, 2000
	AMENDED IN SENATE   APRIL 25, 2000
	AMENDED IN SENATE   MARCH 29, 2000

INTRODUCED BY   Senators Alpert and Karnette
   (Principal coauthor:  Assembly Member Reyes)

                        JANUARY 5, 2000

   An act to amend Sections 69612, 69613, 69613.1, 69613.2, 69613.4,
69613.5, 69614, 69615, 69615.4, and 69615.6 of, to add Section
69613.8 to, and to repeal Sections 69612.5, 69613.15, 69615.2, and
69616 of, the Education Code, relating to student financial aid.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1330, Alpert.  Student financial aid:  Assumption Program of
Loans for Education.
   Existing law establishes an Assumption Program of Loans for
Education, under which an applicant enrolled in an eligible
institution of postsecondary education, or an applicant who agrees to
participate in a teacher trainee or teacher internship program, and
who further agrees to obtain a teaching credential in a subject area
that is designated as a current or projected shortage area, or to
provide classroom instruction in a school that serves a large
population of pupils from low-income families, is eligible to receive
a conditional warrant for loan assumption, to be redeemed pursuant
to a prescribed procedure upon becoming employed as a teacher.
   This bill would amend the statutes relating to the program so that
they refer to agreements, rather than conditional warrants, as the
instruments through which the loan assumptions are accomplished.  The
bill would also generally revise and recast other statutes relating
to the program, and make numerous technical and conforming changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 69612 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69612.  (a) The Legislature finds and declares all of the
following:
   (1) There is a growing shortage of high-quality classroom
teachers, and there is a need for qualified teachers throughout
California.
   (2) One of the most important elements in a pupil's success at
learning is the quality of the teacher.
   (3) The teacher shortage is most serious in particular subject
areas, partly due to the shortage of students in these fields who
enter the teaching profession.
   (4) Many school districts have difficulty recruiting and retaining
high-quality teachers for low-performing schools, for pupils with
special needs, for schools serving rural areas or large populations
of pupils from low-income and linguistic minority families, and for
schools with a high percentage of teachers holding emergency permits.

   (5) The rising costs of higher education, coupled with a shift in
available financial aid from scholarships and grants to loans, make
loan repayment options an important consideration in a student's
decision to pursue a postsecondary education.
   (6) The availability of financial aid and loan repayment
assistance are important considerations for many students, especially
economically disadvantaged students, in making their educational
decisions.
   (b) It is, therefore, the intent of the Legislature that all of
the following occur:
   (1) The Assumption Program of Loans for Education be designed to
encourage persons to enter into the teaching profession in designated
subject matter shortage areas and in schools serving large
populations of pupils from low-income families, schools serving rural
areas, schools with a high percentage of teachers holding emergency
permits, or schools with any or all of these characteristics.
   (2) That the enactment of this article accomplish all of the
following:
   (A) Providing outstanding postsecondary students, particularly
economically disadvantaged students, with the assurance of financial
assistance to encourage them to complete postsecondary education
programs leading to teaching credentials, and to seek employment as
teachers.
   (B) Providing persons who agree to become teacher trainees or
teacher interns in a subject matter shortage area with the assurance
of financial assistance to encourage them to complete the additional
coursework necessary to obtain a teaching credential.
   (C) Identifying subject matter areas or schools in which there are
shortages of fully credentialed teachers and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those areas.
   (D) Identifying schools serving rural areas, schools serving large
populations of students from low-income families, or both, and
schools with a high percentage of teachers holding emergency permits,
and provide incentives for persons to obtain teaching credentials
and seek teaching positions in those schools.
   (E) Identifying low-performing schools and provide incentives for
persons to obtain teaching credentials and seek teaching positions in
those schools.  For the purpose of this article, "low-performing
school" means a school in the bottom half of the Academic Performance
Index rankings established pursuant to subdivision (a) of Section
52056 at the time that a teacher is hired.
   (3) Commencing with the 2000-01 school year, all persons eligible
to enter into agreements for loan assumption pursuant to this article
shall be persons who need to complete training or coursework in
order to be fully credentialed, and who agree to obtain a credential
and teach in a designated subject matter shortage area or in a school
that, at the time that the teacher is hired, meets any of the
following criteria:
   (A) Serves a large population of pupils from low-income families.

   (B) Has a high percentage of teachers holding emergency permits.
For the purposes of this article, a school with a "high percentage of
teachers holding emergency permits" is a school in which 20 percent
or more of the teachers hold emergency permits, teach pursuant to
waivers of credential requirements, or are interns.
   (C) Is a low-performing school.
   (4) Funding necessary for the administration of this article shall
be included within the annual budget of the commission in an amount
necessary to meet the student loan obligations incurred by the
commission.
  SEC. 2.  Section 69612.5 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is repealed.
  SEC. 3.  Section 69613 of the Education Code, as amended by Chapter
70 of the Statutes of 2000, is amended to read:
   69613.  (a) (1) Any person enrolled in an eligible institution, or
any person who agrees to participate in a teacher trainee or teacher
internship program, may be eligible to enter into an agreement for
loan assumption, to be redeemed pursuant to Section 69613.2 upon
becoming employed as a teacher.  In order to be eligible to enter
into an agreement for loan assumption, an applicant shall satisfy all
of the conditions specified in subdivision (b).
   (2) As used in this article, "eligible institution" means a
postsecondary institution that is determined by the Student Aid
Commission to meet both of the following requirements:
   (A) The institution is eligible to participate in state and
federal financial aid programs.
   (B) The institution maintains a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
   (b) (1) The applicant has completed at least 60 semester units, or
the equivalent, and is enrolled in an academic program leading to a
baccalaureate degree at an eligible institution, has agreed to
participate in a teacher trainee program or teacher internship
program, or has been admitted to a program of professional
preparation that has been approved by the Commission on Teacher
Credentialing.
   (2) The applicant is currently enrolled, or has been admitted to a
program in which he or she will be enrolled on at least a half-time
basis, as determined by the participating institution.  The applicant
shall agree to maintain satisfactory academic progress and a minimum
of half-time enrollment, as defined by the participating eligible
institution.
   (3) The applicant has been judged by his or her postsecondary
institution to have outstanding ability on the basis of criteria that
may include, but need not be limited to, any of the following:
   (A) Grade point average.
   (B) Test scores.
   (C) Faculty evaluations.
   (D) Interviews.
   (E) Other recommendations.
   (4) The applicant has received, or is approved to receive, a loan
under one or more of the following designated loan programs:
   (A) The Federal Family Education Loan Program (20 U.S.C. Sec. 1071
et seq.).
   (B) Any loan program approved by the Student Aid Commission.
   (5) The applicant has agreed to teach full time for at least four
consecutive academic years after obtaining a teaching credential in a
public elementary or secondary school in this state, in a subject
area that is designated as a current or projected shortage area by
the Superintendent of Public Instruction, or at a school that, at the
time that the teacher is hired, meets any of the following criteria:

   (A) It serves a large population of pupils from low-income
families, as designated by the Superintendent of Public Instruction.

   (B) It has 20 percent or more teachers holding emergency permits.
For the purposes of this paragraph,  "teachers holding emergency
permits" includes persons who teach pursuant to waivers of credential
requirements or who are interns.
   (C) It is a low-performing school.
   (c) No applicant who has completed fewer than 60 units, or the
equivalent, shall be eligible under this section to participate in
the loan assumption program set forth in this article.
   (d) The agreements entered into each year pursuant to subdivision
(b) at each eligible institution or participating school district or
county office of education shall be with applicants who meet the
criteria specified in paragraph (3) of subdivision (b) of Section
69612 or agree to teach in any of the subject areas listed pursuant
to that section.  An agreement shall remain valid even if the subject
area under which an applicant becomes eligible to enter into an
agreement ceases to be a designated shortage field by the time the
applicant becomes a teacher.
   (e) For the purposes of calculating eligible years of teaching for
the redemption of an award, the designation by the Superintendent of
Public Instruction of a newly-opened school pursuant to Section
52056 shall apply retroactively from the time of opening the school.

   (f) A person participating in the program pursuant to this section
shall not enter into more than one agreement.
  SEC. 4.  Section 69613.1 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69613.1.  (a) The Superintendent of Public Instruction shall
furnish the commission with all of the following:
   (a) Commencing January 1, 1990, and every January 1 thereafter, a
list of teaching fields that have the most critical shortage of
teachers.  The superintendent shall review this list annually and
revise the list as he or she deems necessary.  Commencing January 1,
2001, the list of shortage areas furnished pursuant to this
subdivision shall include the state special schools as a category
separate from special education.
   (b) A list of schools that serve a large population of pupils from
low-income families, as designated for purposes of the Perkins Loan
Program, or according to standards the superintendent deems
appropriate.
   (c) Commencing January 31, 2001, and every January 1 thereafter, a
list of schools with a high percentage of teachers holding emergency
permits.  The list shall be established according to criteria
determined by the superintendent.
   (d) Commencing January 31, 2001, and every January 1 thereafter, a
list of schools serving rural areas.  The list shall be established
according to standards deemed appropriate by the superintendent.
   (e) Commencing January 31, 2001, and every January 1 thereafter, a
list of low-performing schools.
  SEC. 5.  Section 69613.15 of the Education Code is repealed.
  SEC. 6.  Section 69613.2 of the Education Code is amended to read:

   69613.2.  The commission shall commence loan assumption payments,
as specified in Section 69613.4, upon verification that the applicant
has fulfilled all of the following:
   (a) The applicant has received a teaching credential requiring a
baccalaureate degree, other than an emergency teaching permit,
authorizing service for kindergarten or any of grades 1 to 12,
inclusive.
   (b) The applicant has provided full-time classroom instruction in
a public elementary or secondary school for the equivalent of one
school year.
   (c) The applicant has met the requirements of the agreement and
all other pertinent conditions of this article.
  SEC. 7.  Section 69613.4 of the Education Code is amended to read:

   69613.4.  (a) The terms of a loan assumption granted under this
article shall be as follows, subject to the specific terms of each
agreement:
   (1) After a program participant has completed one school year of
classroom instruction pursuant to Section 69613.2, the commission
shall assume up to two thousand dollars ($2,000) of the participant's
outstanding liability under one or more of the designated loan
programs.
   (2) After a program participant has completed two consecutive
school years of instruction, the commission shall assume up to an
additional three thousand dollars ($3,000) of the participant's
outstanding liability under one or more of the designated loan
programs, for a total loan assumption of up to five thousand dollars
($5,000).
   (3) After a program participant has completed three consecutive
school years of teaching service, the commission shall assume up to a
maximum of an additional three thousand dollars ($3,000) of the
participant's outstanding liability under one or more of the
designated loan programs, for a total loan assumption of up to eight
thousand dollars ($8,000).
   (4) After a program participant has completed four consecutive
school years of teaching service, the commission shall assume up to a
maximum of an additional three thousand dollars ($3,000) of the
participant's outstanding liability under one or more of the
designated loan programs, for a total loan assumption of up to eleven
thousand dollars ($11,000).
   (b) For purposes of this section, "school year" means at least 175
school days or its equivalent.
  SEC. 8.  Section 69613.5 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69613.5.  Notwithstanding paragraph (3) of subdivision (b) of
Section 69612 and Section 69614, for the purposes of the recruitment
of teachers from outside California, the commission may make
agreements available to out-of-state teachers who fulfill the terms
of Section 69613.4 and are otherwise eligible to enter into
agreements.  A teacher who enters into an agreement pursuant to this
section shall hold a valid teaching credential, in the subject area
of the California teaching position, from the state in which he or
she resides.
  SEC. 9.  Section 69613.8 is added to the Education Code, to read:
   69613.8.  In addition to the amounts set forth in subdivision (a)
of Section 69613.4, for each of the four years of classroom
instruction referenced in subdivision (a) of Section 69613.4, the
following loan assumption benefits shall be granted:
   (a) One thousand dollars ($1,000) of additional liability per year
shall be assumed for a person who holds a credential appropriate for
teaching, and who teaches, mathematics, science, or special
education.
   (b) One thousand dollars ($1,000) of additional liability per year
shall be assumed for a person who teaches in a school in the lowest
20 percentile of Academic Performance Index rankings.  Eligibility
for the benefit set forth in this subdivision shall be limited to a
person who holds a credential appropriate for teaching, and who
teaches, mathematics, science, or special education.
   (c) Not more than a total of five million dollars ($5,000,000)
shall be expended in any academic year for the purposes of this
section.
  SEC. 10.  Section 69614 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69614.  (a) The commission shall distribute program information
and student applications to participate in the loan assumption
program to each eligible institution and to each school district or
county office of education operating a district intern program
pursuant to Section 44381.  Each eligible institution shall receive
at least one application, and the remainder shall be distributed to
eligible institutions proportionate to the number of teaching
candidates from each institution who completed the coursework
required for a teaching credential during the previous year.  In
addition, the commission shall reexamine its outreach and marketing
strategies to inform both potential undergraduates and persons
employed outside of academia about the availability and benefits of
the loan assumption program.  To this end, the commission shall
enlist the advice and support of the California Center for the
Teaching Profession, the University of California, the California
State University, the Association of Independent California Colleges
and Universities, and private employers and their associations
throughout the state.
   (b) Each eligible institution, school district, and county office
of education shall sign an institutional agreement with the
commission, certifying its intent to administer the loan assumption
program according to all applicable published rules, regulations, and
guidelines, and to make special efforts to notify students regarding
the availability of the program, particularly economically
disadvantaged students.
   (c) To the extent feasible, each eligible institution shall
coordinate the loan assumption program with other programs designed
to recruit students to enter the teaching profession.
  SEC. 11.  Section 69615 of the Education Code is amended to read:
   69615.  (a) The commission shall administer this article, and
shall adopt rules and regulations for that purpose.  The rules and
regulations shall include, but need not be limited to, provisions
regarding the period of time during which an agreement shall remain
valid, the reallocation of resources in light of agreements that are
not utilized by program participants, the failure, for any reason, of
a program participant to complete a minimum of four consecutive
years of classroom instruction, and the development of projections
for funding purposes.
   (b) The commission shall solicit the advice of representatives
from postsecondary education institutions, the State Department of
Education, the Commission on Teacher Credentialing, school districts,
and county offices of education regarding proposed rules and
regulations.
  SEC. 12.  Section 69615.2 of the Education Code is repealed.
  SEC. 13.  Section 69615.4 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69615.4.  The commission shall report annually to the Legislature
regarding all of the following, on the basis of sex, age, and
ethnicity:
   (a) The total number of program participants.
   (b) The number of agreements entered into with juniors, seniors,
students enrolled in teacher training programs, and persons who agree
to enroll in teacher trainee programs or teacher internship
programs.
   (c) The number of participants who agree to teach in a subject
matter shortage area.
   (d) The number of participants who agree to teach in schools with
a high ratio of pupils from low-income families and in low-performing
schools.
   (e) The number of participants who agree to teach in schools
serving rural areas.
   (f) The number of participants who agree to teach in schools with
a high percentage of teachers holding emergency permits.
   (g) The number of participants who receive a loan assumption
benefit, classified by payment year.
   (h) The number of participants who have participated in the
Science, Mathematics, and Technology Teacher Pipeline Program
established by Chapter 1271 of the Statutes of 1993.
   (i) The number of out-of-state teachers who enter into agreements.

   (j) The number of participants who have participated in teacher
trainee programs or teacher internship programs, classified by school
district or county office of education.
  SEC. 14.  Section 69615.6 of the Education Code, as amended by
Chapter 70 of the Statutes of 2000, is amended to read:
   69615.6.  (a) Beginning no later than the 1986-87 school year, and
each school year thereafter up to and including the 1997-98 school
year, the commission shall issue warrants for the assumption of up to
500 student loans for program participants eligible under this
article.
   (b) For the 1998-99 school year, the commission shall issue
warrants for the assumption of up to 4,500 student loans for program
participants eligible under this article.
   (c) For the 1999-2000 school year the commission shall issue
warrants for the assumption of up to 5,500 student loans for program
participants eligible under this article.
   (d) Commencing with the 2000-01 school year, and each school year
thereafter, all of the following shall apply:
   (1) The commission shall enter into agreements for the assumption
of up to 6,500 student loans for program participants eligible under
this article.
   (2) Notwithstanding the limitation of 6,500 warrants set forth in
paragraph (1), the commission shall issue warrants in a quantity
determined by the Governor and the Legislature in the annual Budget
Act for the assumption of student loans.
   (3) Priority for these agreements shall be given to applicants who
are recipients of federally subsidized loans or other need-based
loans, as determined by the commission.
   (4) Priority for these agreements shall be given to applicants who
agree to obtain a teaching credential in mathematics or science.
   (e) In any school year, the commission may enter into no more than
500 agreements with applicants who participate in a district intern
program operated by a school district or a county office of
education.
   (f) The issuance of warrants under this article in any fiscal year
shall be subject to the provision of funding therefor in the annual
Budget Act.
  SEC. 15.  Section 69616 of the Education Code is repealed.
